Section 194LB – Income by way of interest from Infrastructure Debt Fund

TDS shall be deducted under Sec 194LB for Interest from Infrastructure Funds if the following conditions apply-

1. The interest income is paid by an infrastructure debt fund referred to in section 10 (47).
2. Interest income is paid to a non-resident or to a foreign company.

Time of Deduction: Deduction shall be made by payer, earlier of-

• At the time of credit of income to the account of the recipient or
• At the time of payment in cash or draft or cheque or any other mode

Rate of Deduction: TDS to be deducted at the rate of 5%.

∼Authored by – CA Anushka Saraogi∼

Key TDS & TCS Amendments in Budget 2023